An Offer in Compromise (OIC) is an agreement reached between the taxpayer and the IRS that settles a tax liability for a payment amount that is less than the full amount of tax owed. Often it is pennies on the dollar. The IRS has the power to settle such debts when it believes the taxpayer will never be able to pay the tax amount in full. In fact, the offer, when granted, generally allows the IRS to collect more in taxes, than would be the case, if the agreement was not reached. In addition, the taxpayer is likely to be compliant in filing future taxes, when the burden of large prior tax liability he or she could not pay, is resolved. Not everyone qualifies to file an Offer in Compromise. Filing an offer involves completing an in-depth financial form, along with providing supportive records, and is time consuming to complete. Completing one is like navigating through a mine field - if you don't properly dot every "i" and cross every "t", the IRS can deny the application. It can be a very difficult process for taxpayers, who try to do it on their own. If you owe back taxes and there is no way you can afford to pay it off, let me review your situation to see if an Offer in Compromise would work for you.